U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-KSB

(Mark One)

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 [Fee Required]

For the fiscal year ended July 31, 2000

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934 [No Fee Required]

For the transition period from to

Commission file number: 0-8289

The Rovac Corporation

(Name of small business issuer in its charter)

Delaware 59-1461320

(State or other jurisdiction of (I.R.S. Employer

incorporation or organization) Identification No.)

1030 Stafford Street, Rochdale MA 01542

(Address of principal executive offices)

Issuer's telephone number: (508) 892-1121

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12 (g) of the Act:

Common Stock, par value $0.01 per share

(Title of class)

Check whether the issuer (1) filed all reports required to be for such shorter period that the Registrant was required to file reports, and (2) been subject to such filing requirement for the past 90 days.

Yes_____No__X__

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [ X ]

State issuer's revenues for its most recent fiscal year: $63,941

The aggregate market value of the voting stock held by non-affiliates computed by reference to the price at which the stock was sold within the past 60 days was $1,147,775 as of October 27, 2000.

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

The number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date, October 27, 2000, was 39,958,073 shares of Common Stock, $0.01 par value.

DOCUMENTS INCORPORATED BY REFERENCE

If the following documents are incorporated by reference, briefly describe them and identify the part of the Form 10-KSB into which the document is incorporated: (1) any annual report to security holders; (2) any proxy of information statement; and (3) any prospectus filed pursuant to Rule 424 (b) or (c) of the Securities Act of 1933 ("Securities Act"). NONE.

PART I

Item 1. Description of Business.

(a) General Development of Business

The ROVAC Corporation ("the Company") is a Delaware corporation, which was organized in 1972 and has been involved in the research and development of a variety of mechanical devices. During the last fiscal year, the Company continued manufacturing and selling key components of its thermoplastic pipe connecting technology. The Company's patented CinchLockâ pipe connectors consist of mechanical connecting devices, which join pipes and joints of assorted size and shapes without glue or solder to permit the flow of fluid or air under different operating conditions and pressures. The Company has only one business segment.

(b) Business of Issuer

During the fiscal year ending July 31, 2000, the Company completed its negotiations with NIBCO resulting in an exclusive worldwide thermoplastic sales agreement effective May 1, 2000. During the fiscal year, the Company continued to manufacture and sell product to NIBCO. NIBCO is currently finalizing plans to introduce additional thermoplastic product lines into the marketplace during the first six months of the calendar year 2001. As a result of the NIBCO worldwide thermoplastic exclusive agreement, all ongoing negotiations in Europe were terminated.

At the end of the fiscal year, The ROVAC Corporation had 2 employees who worked full time, a full time consultant and two part-time employees. The Company uses part-time employees on an as needed basis for manufacturing. The Company has numerous domestic and foreign patents issued as well as a number of other patent applications pending for its CinchLockâ pipe connecting technology. During the fiscal year, the Company received notice from the Mexican Patent Office that its CinchLockâ patent application has been granted. The Company has a number of patents both pending and granted which cover the Company's technology.

Research and Development expenses for the years ended July 31, 2000 and July 31, 1999 were $19,971 and $21,726, respectively - a decrease of $1,755. This decrease reflects no significant change in the Company's Research and Development.

Item 2. Description of Property.

The Company's product development facilities and administrative offices are located in Rochdale, Massachusetts and occupy approximately 6,520 square feet. ROVAC rents the space, which it occupies from its controlling shareholder, Stafford Industries, Inc., ("Stafford"). The lease expires on July 31, 2002.

Item 3. Legal Proceedings.

There are no pending or threatened legal proceedings against the Registrant.

Item 4. Submission of Matters to a Vote of Security Holders

None.

PART II

Item 5. Market for Common Equity and Related Stockholder Matters

Common Stock

The Company has authorized 40,000,000 shares of Common Stock ($0.01 par value per share), of which 39,958,073 shares of Common Stock were reported issued and outstanding as of July 31, 2000. In addition, there are 25,000 shares of Common Stock issuable as of July 31, 2000. All of the issuable shares will have restrictions against transfer pursuant to Regulation D and/or will be exempt from registration under the Securities Act of 1933, as amended.

Market for Common Stock

The Company's Common Stock has been traded in the over-the-counter market since 1974, and is presently listed in the "pink sheets" by approximately ten (10) broker-dealers. The following is the range of low and high bid prices for a share of the Company's stock for quarters ended:

During the fiscal year, the range of low and high bid price for the Company's Common Stock was between $ .07 and $ .1825 per share. Prices represent quotations from the "pink sheets" without adjustment for retail mark-ups, markdowns, or commissions and do not represent actual transactions. The number of stockholders of record as of July 31, 2000 was approximately 3,530. The Company has paid no dividends on its Common Stock for the last three fiscal years and does not expect to pay any di

As of July 31, 2000, Stafford held of record 22,300,000 shares of the Common Stock ($0.01 par value per share) of the Company and 12,000 shares of Preferred Stock ($100 par value per share) of the Company.

There is no trading market contemplated for the preferred shares and the conversion value of the preferred shares shall not exceed par value. The company, by action of its Board of Directors, may call or redeem the whole or any part of the Preferred Stock, at any time, or from time to time, at $100 per share plus a sum equal to all accumulated and unpaid dividends thereon to the date fixed for redemption. In the event that the Board of Directors calls or redeems the whole or any part of the Preferred Stock, the Board shall be required to take such action on or within ten (10) years from issue.

Item 6. Management's Discussion and Analysis or Plan of Operation

(a) Plan of Operation

In conjunction with the NIBCO Agreement, the Company's operations have recently changed from the past and our now primarily focused on the manufacture of its CinchLockâ and CinchFree^tm product lines. The Company will continue to produce inventory in order to meet the upcoming demand under the new NIBCO thermoplastic agreement. The current NIBCO Agreement requires minimal payments, which increase during the contract period, which expires on April 30, 2004. The Company's production plans are intended to meet NIBCO's requirements which are expected to increase during the first six months of calendar year 2001.

Additionally, the Company is currently evaluating how to proceed with its CinchLockâ product introduction into the metals markets. One option under consideration would be to secure additional licenses for metal market applications. The second option under consideration would be for the Company to internally develop, produce, market and distribute a product line of CinchLockâ metal market repair couplings.

The Company intends to receive additional income pursuant to its NIBCO Agreement and also intends to receive funding from its parent company in order to meet its cash requirements for the upcoming fiscal year. However, there can be no assurance that such sources of funding will continue.

During the fiscal year, the Company received limited revenues through the sales of its CinchLockâ pipe connecting technology and received increased income from its commercial licensing agreement. At the close of and for the fiscal year ending on July 31, 2000 officers made net loans to the Company in the amount of approximately $1,100. At the close and for the fiscal year ending on July 31, 2000 net advances from the parent company increased by approximately $33,000.

(b) Management's Discussion and Analysis of Financial Condition

(1) Results of Operations for the year ended July 31, 2000

Revenues were $63,941 for the year ending July 31, 2000 as compared to $96,634 for the year ending July 31, 1999. The decrease of $32,693 was primarily due to the Company's efforts during the year to finalize its worldwide thermoplastics agreement with NIBCO.

The total operating expenses were $165,504 for the year ending July 31, 2000 as compared to $178,013 for the fiscal year ending 1999. The decrease of $12,509 is attributable to the Company's efforts to contain cost in all areas.

(2) Results of Operation for the year ended July 31, 1999

The total operating expenses were $178,013 for the year ending July 31, 1999 as compared to $146,587 for the fiscal year ending 1998. The increase of $31,426 is mainly attributable to production, manufacturing and research and development costs related to an increase in product demand.

Item 7. Financial Statements

The Financial Statements required by Regulation S-D are included in this Annual Report on Form 10-KSB commencing on page F-1.

Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None

PART III

Item 9. Directors, Executive Officers, Promoters and Control Person, Compliance with Section 15(a) of the Exchange Act.

The last Annual Meeting of the Shareholders of the Company was held on March 31, 1989, when Mr. Shea, Sr., Mr. Riesner, Mr. Spillane, and Mr. Shea, Jr., were re-elected as directors and Mr. Loscocco was elected a new director of the Company. These directors were elected by the shareholders to serve until the next annual meeting or until their successors are elected and qualified. The following information is furnished with respect to current directors and officers of the Company.

Name Age Position Period of Service

Raymond E. Shea, Sr.

Deceased in June 2000 82 Chief Executive May, 1984 - June

Officer, Director 2000

Robert Riesner 71 Secretary, September 1982

Director to date

S. John Loscocco 76 Director March 1989

to date

John W. Spillane 69 Director May, 1984

to date

Raymond E. Shea, Jr. 41 Vice President April 1985

Treasurer, Director to date

Raymond E. Shea, Sr., served as Chairman of the Board of Directors and Chief Executive Officer of the Company. Mr. Shea had been an officer and director of the Company since 1984. Mr. Shea was an entrepreneur and inventor. He was a businessman associated with the commercialization of technical products and business turnarounds.

Robert Riesner, Secretary and Director of the Company, is a financial consultant and workout specialist supervising various corporate transactions and reorganizations. Mr. Riesner has been an officer and director of the Company since 1982. Since April 1983, he has been a principal of PBR Financial Services.

S. John Loscocco is a Director who is an investor with extensive experience in the field of venture capital. Mr. Loscocco has served as President of Acquivest Group, Inc., a venture management organization for more than the past ten years.

John W. Spillane is a Director of the Company and serves the Company as its General Counsel. Mr. Spillane has been a Director of the Company since 1984. He is a member of the Massachusetts State and Federal Bar, and has been a practicing attorney in Worcester, Massachusetts for 42 years.

Raymond E. Shea, Jr. is Vice President, Treasurer and Director of the Company and is the son of Raymond E. Shea, Sr. He has been an officer and director of the Company since April 1985 and has served the Company in a variety of key operating and managerial positions during the past twelve years. Mr. Shea is also a Treasurer and Director of Stafford Industries, Inc.

Item 10. Executive Compensation

All officers and directors of the Company received the following compensation (both cash and deferred) during fiscal year 2000:

The chief executive officer had not drawn a salary in the three year period ending July 31, 2000.

No officer or director earned in excess of $100,000 in the three year period ending July 31, 2000.

The aggregate amount of other compensation paid to each officer and director during the last fiscal year did not exceed the lesser of $25,000 or 10% of cash compensation. There are no plans in effect or proposed under which the issuer paid or will pay cash, non-cash, or other compensation to any person, including the above named individuals and group specified in this Item. Notwithstanding the foregoing, directors accrue $300.00 of compensation for their services in attending each directors' meeting. 

Item 11. Security Ownership of Certain Beneficial Owners and Management.

Stafford Industries, Inc., of Rochdale, Massachusetts ("Stafford") owns a majority of shares of common stock of the Company. As of July 31, 2000, Stafford owned 22,300,000 shares of common stock of the Company and 12,000 shares of preferred stock of the Company. The identity of the officers and directors of Stafford is as follows:

Estate of Raymond E. Shea, Sr., Former President and Director,

342 Silver Palm Lane

Royal Palms, Boca Raton, FL 33432;

Raymond E. Shea, Jr., Treasurer and Director,

175 Southbridge Road

North Oxford, MA 01537;

John W. Spillane, Clerk and Director

11 Dennison Road

Worcester, MA 01609

The Estate of Raymond E. Shea, Sr., Former President and Chairman of the Board of Stafford, is the controlling stockholder of Stafford. The Estate of Mr. Shea, Sr. owns 5,157 shares of common stock of Stafford, which is 31.25% of the number of shares of Stafford issued and outstanding. The Estate of Mr. Shea, Sr. owned the same number of shares of Stafford common stock at the close of the fiscal year ending July 31, 2000.

The authorized capital stock of the Company consists of 40,000,000 shares of common stock, par value $0.01 per share, and 25,000 shares of preferred stock, $100 per share. As of July 31, 2000, Stafford owned 56% of the common stock of the Company and all of the preferred stock issued by the Company.

The following table shows the amount of common stock of the Company owned of record and beneficially as of July 31, 2000 by each Director and all Directors and Officers as a group, consisting of five persons:

(1) The Estate of Mr. Shea, Sr. owns 31.25% of all of the shares of common stock of Stafford, which holds 22,300,000 shares of common stock of ROVAC.

(5) Mr. Loscocco has previously disclaimed ownership in 120 shares of common stock of Stafford which were issued to Mr. Loscocco and subsequently transferred to Acquivest Holding II, Ltd., with which Mr. Loscocco is affiliated. The 120 shares of common stock of Stafford represents 0.72% of the issued and outstanding shares of Common Stock of Stafford and represents 162,181 shares of Common Stock of the Company held by Stafford.

There were no transactions in excess of $75,000 with related parties.

None.

None.

THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY OMITTED.

In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned.

(Registrant) THE ROVAC CORPORATION

By (Signature and Title) /Raymond E. Shea, Jr./

Raymond E. Shea, Jr., Vice President/Treasurer

Date October 31, 2000

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicates.

THE ROVAC CORPORATION

Table of Contents

Independent Auditors' Report F-1

Balance Sheets F-2 - F-3

Statements of Operations F-4

Statements of Stockholders' Deficit F-5

Statements of Cash Flows F-6

The Board of Directors and Stockholders

The ROVAC Corporation

We have audited the accompanying balance sheets of The ROVAC Corporation as of July 31, 2000 and 1999, and the related statements of operations, stockholders' deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The ROVAC Corporation as of July 31, 2000 and 1999, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency. These conditions raise substantial doubts about the Company's ability to continue as a going concern. Management's plan in regard to these matters is described in Note 1. The financial statements do not include any adjustments that might arise from the outcome of this uncertainty.

MOTTLE McGRATH BRANEY & FLYNN, P.C.

Worcester, Massachusetts

October 18, 2000

F-1

See accompanying notes to condensed financial statements.

F-5

Notes to Financial Statements

(1) Basis of Presentation

(2) Summary of Significant Accounting Policies

(a) Inventory

(b) Property and equipment

(c) Patent applications

F-7

(2) Summary of Significant Accounting Policies (continued)

(e) Loss per share of common stock

(3) Inventory

(4) Notes Payable - Shareholder

(5) Accrued Expenses

Accrued expenses consist of:

F-8

The Rovac Corporation

Notes Financial Statements

(6) Income Taxes

(7) Related Party Transactions

The Company leases its space from its parent company under an operating lease. The lease expense was $19,560 for 2000 and 1999. The approximate minimum lease payments under the lease is as follows:

F-9